S&P ups Tyson Foods

Standard & Poor's said it raised Tyson Foods Inc.'s corporate credit rating to BB+ from BB, along with its senior unsecured notes to BB+ from BB. The 3 recovery ratings on the $810 million notes maturing 2014 and on the $1 billion notes maturing 2016 remain unchanged, along with the 4 recovery ratings on Tyson's other senior unsecured debt, including the convertible notes due 2013.

The outlook is positive.

The upgrade and positive outlook reflect an opinion that operating performance continues to improve, allowing the company to accelerate debt repayments year-to-date in fiscal 2010, resulting in credit measures that are significantly better for the BB rating category, S&P said.

The ratings also consider the company's exposure to commodity price swings and the low-margin nature of the majority of Tyson's sales, the agency said.

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